STMicro pulls out of graphics biz

Yahoo is reporting that STMicro is exiting the PC graphics accelerator business.

GENEVA--(BUSINESS WIRE)--Feb. 8, 2002\226-STMicroelectronics (NYSE:STM - news) has announced that it is withdrawing from the PC Graphics Accelerator IC market and is currently seeking a buyer for the related assets and activities of its PC Graphics business, which accounted for approximately $15 million of ST's $6.36 billion revenues in 2001.

The potential sale is in line with ST's objective of focusing its R&D efforts on market areas that are strategically important to the Company, notably: communications, automotive, computer peripherals, smart cards and digital consumer. In the digital consumer market, ST will continue to emphasize set-top box, DVD and digital TV applications, in which the Company holds worldwide leadership positions.

You will recall that STMicro partnered with Imagination Technologies and card makers like Hercules to bring the Kyro II to market in cards like the 3D Prophet 4500. It would be a real shame to see Imagination Tech's PowerVR tile-based rendering kept out of the PC graphics market. Let's hope someone picks up the slack and does something with the Kyro 3. Thanks to Shacknews for the tip.